November 15, 2012
JBS is scheduled to open six new beef plants in Brazil in the coming months, which will add a total capacity of 1.2 million head by 2013, representing a 15% increase over the current capacity in Brazil.
As the plants get into full swing at the end of 2013, they will be able to process up to two million head a year.
JBS posted a quarterly profit of BRL367 million (US$178 million) late on Tuesday (Nov 13), recovering from a quarterly loss of BRL68 million (US$33 million) a year earlier thanks to its strong beef business in Brazil.
Batista said the company was quickly reducing its leverage, or debt to earnings, with the improving reproductive cycle of the Brazilian cattle herd and a weaker Brazilian real against the dollar.
"The cost of raising an animal in the US is twice the cost of raising an animal in Brazil. So, they are reducing the size of their herd," Batista said, adding that the outlook for Brazilian beef production was extremely positive.
Batista said he expects a favourable cycle for the company's Brazil operations until 2015 as the number of cattle available for slaughter grows. The country has the world's biggest commercial herd of more than 200 million head.
"Business in Brazil is more attractive than abroad. We are increasing production in the place that offers the best returns," Batista said.
